This case illustrates the complex relationship that can exist between proceedings brought against two different sea carriers arising out of the same event. French Courts addressed the following question: how can judgments issued in one of the proceedings be used in the other proceedings? Ultimately, the handling of circular recourses between cargo interests, sea carriers and stevedore companies depends on the interpretation of privity of contract and res judicata.Continue Reading One event, two legal realities! Successful outcome for Reed Smith’s Paris shipping team in major cargo claim dispute
Jurisdiction
Paris shipping update #1
This article was originally published on Lloyd’s Maritime and Commercial Law Quarterly and is republished with permission.
In the latest of our series, which is annually published in the Lloyds Maritime and Commercial Law Quarterly Yearbook, Andrew Tetley and Antoine Guillemot have collated and reported on developments in French shipping law.
Sea carriers can be
…Direct claims against insurers and anti-suit injunctions
In Shipowners’ Mutual Protection & Indemnity Association (Luxembourg) -v- Containerships Denizcilik Nakliyat ve Ticaret AS (The “Yusuf Cepnioglu”) [2016] EWCA Civ. 386, the Court of Appeal considered the juridical nature of a foreign statute which gives a victim (in this case, a charterer) the right to sue a defendant’s insurer (in this case, an owners’ club) directly without first suing the insured, and in the circumstances of the case, whether it was appropriate to uphold an anti-suit injunction (“ASI”) which had been made by the court below.
Reliance was placed on the previous decisions dealing with similar foreign legislation, such as The “Hari Bhum” (No. 1) [2004] 1 Lloyd’s Rep. 206; and [2005] 1 Lloyd’s Rep. 67, which considered the provisions of the Finnish Insurance Contract Act 1994 and The “Prestige” (No. 2) [2014] 1 Lloyd’s Rep 309 and [2015] 2 Lloyd’s Rep. 33 concerning the Spanish Penal Code.
In this case, the Court was looking at Turkish law, which provided, amongst other things, that “Article 1478 – the victim may claim its loss up to the insured sum directly from the insurer provided that the claim is brought within the prescription period to the insurance contract”.Continue Reading Direct claims against insurers and anti-suit injunctions
Bank ordered to honour refund guarantees despite foreign court orders prohibiting payment
The Claimant Buyers brought proceedings against the Defendant Bank under refund guarantees issued by the Bank in support of two shipbuilding contracts between the Buyers and Sellers. Pursuant to the contracts, the Claimant had paid instalments on terms that they would be refunded if the contracts were cancelled. When the ships were not delivered on…
Court of Appeal holds standard clause in bills of lading to be exclusive English jurisdiction clause
Hin-Pro International Logistics Ltd v Compania Sud Americana de Vapores SA [2015] EWCA Civ 401
The Appellant Freight Forwarder commenced actions in China under 70 bills of lading, which incorporated the Respondent’s standard clauses. Clause 23 provided in material part:
“This Bill of Lading and any claim or dispute arising hereunder shall be subject to…
Court awards as damages costs incurred as a result of a breach of a law and jurisdiction clause
Swissmarine Services SA v Gupta Coal India Private Limited [2015] EWHC 265 (Comm)
The Claimant and Defendant entered into a COA which contained an English law and jurisdiction clause. When the Defendant failed to comply with the terms due to difficulties in despatching and shipping the cargo, the Claimant brought a claim for breach of…
Court of Appeal Upholds Incorporation of English Jurisdiction Clause from Charterparty into Bill of Lading
Caresse Navigation Ltd v Zurich Assurances Maroc & Ors [2014] EWCA Civ 1366
A cargo of coal was carried by the Respondent Owners from Rotterdam to Nador (Morocco). Whilst underway, emergency cooling measures were taken to prevent the cargo combusting which allegedly caused damage to the cargo.
Owners commenced proceedings in the English High Court,…
Arbitration clause in LOU held to replace charterparty arbitration clause
Viscous Global Investment Ltd v Palladium Navigation Corp [2014] EWHC 2654 (Comm)
The Claimants had claims for cargo damage against the vessel Owners arising under four bills of lading. The vessel was the subject of a chain of three charterparties. The head and sub-charter provided for London Arbitration (two arbitrators unless a sole could be…
Owners fail to set aside summary judgment against them in respect of costs of additional damages proceedings in Greece
In Starlight Shipping Co v Allianz Marine & Aviation Versicherungs AG (The Alexandros T) [2014] EWCA Civ 1010, Owners appealed against a summary judgment awarded against them in favour of the Respondent Insurers.
Owners’ vessel had been a total loss and the Insurers had disputed liability. The claims as between Owners and the Insurers were…
Tribunals have no jurisdiction to hear Owners’ claims for “procuring or inducing” breach of arbitration agreement incorporated into bills of lading
Owners chartered their vessel by way of a charter containing a London Arbitration clause, for a carriage from Turkey to Liberia. The vessel was sub-chartered, and three bills of lading issued to cover the cargo, each naming the same consignee and incorporating the charter terms.
The consignee claimed for cargo damage and commenced proceedings against…